Scanned and packed: Senate inquiry to rule on grocery prices

A parliamentary probe into supermarket price gouging is set to hand down its findings.

The Senate committee, which has investigated the market power of the supermarket duopoly of Coles and Woolworths and its price-setting practices, will release its final report on Tuesday.

The inquiry has been examining allegations of price inflation by major supermarkets while suppliers and producers were being undercut.

Producers told the inquiry of many in the industry being fearful of speaking out against the practices of the supermarket chains for fear of losing contracts.

The committee grilled Coles chief executive Leah Weckert and outgoing Woolworths boss Brad Banducci, the latter being threatened with jail time for holding the Senate in contempt for not answering questions about the supermarket’s profitability.

The Greens-led inquiry has been one of several probes into cost of living concerns at supermarkets in recent months.

A review of the food and grocery code of conduct, which governs the relationship between suppliers and supermarkets, recommended fines of $10 million for companies that don’t comply.

The review, led by former Labor minister Craig Emerson, also called for the current voluntary provisions to be made mandatory.

While there have been calls for divestiture laws to break up the supermarket duopoly, the review dismissed the idea.

The Senate inquiry heard similar calls for break-up powers, led by former consumer watchdog chair Allan Fels.

The Australian Competition and Consumer Commission has also been holding its own inquiry into supermarket practices and the relationship with suppliers.